Telecom Network Report Ed4 2017 - statplanenergy.com · MVNO Mobile Virtual Network Operator and...

Telecom Network Report Ed4 2017 A Network Revolution

HetNet and Densification, Towers & Small Cells, Network Virtualisation

A time of transition 1G to 5G

Hardware to Software

Chapter Summaries

Table of Contents

Lists fo Figures and Tables

Sample Pages

May 2017

StatPlan Energy Research

Towers and Poles Report Chapter Summaries

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EXECUTIVE SUMMARY

PART 1 ELECTRICITY TRANSMISSION TOWERS AND MONOPOLES

Chapter 1 - INSTALLED BASE OF ELECTRICITY TRANSMISSON TOWERS & MONOPOLES

The global installed base of transmission towers and monopoles is analysed in numbers of towers by

region and country and forecast from 2016 to 2020.

Chapter 2 - ELECTRICITY TRANSMISSION TOWERS MARKET

The global demand in $ value for towers and monopoles is analysed by region and country and forecast

from 2016 to 2020.

Chapter 3 - LONG TERM DEMAND CYCLES FOR ELECTRICITY TOWERS AND MONOPOLES

The growth of transmission line networks is a fundamental driver of the markets for towers and poles,

both in line length and voltage. Long term demand is a function of the age of the towers and the

expansion of the networks.

Chapter 4 - MONOPOLES vs. LATTICE TOWERS

The March of the Monopoles - long established in the US, EHV monopoles are breaking into new markets

with innovative new designs, replacing lattice towers, especially in Europe. This trend is driven by

pressure on rights-of-way, visual criticism of lattice towers and public fears of EMF dangers to children.

Chapter 5 - TYPES OF TOWER OR PYLONS

Lattice towers are designed for different functions and stresses and there is wide variation in cost;

suspension towers, tension towers, angle suspension towers, dead-end towers, transposition towers.

Tower installation is a dangerous and complex procedure and has an impact on costs.

Chapter 6 - ELEMENTS OF LATTICE TOWER DESIGN

Many designs of transmission tower exist and are used in different situations. Some of the basics are

discussed here with diagrams of designs and the different elements of a tower.

Chapter 7 - SERVICE LIFE AND MAINTENANCE OF STEEL LATTICE TOWERS AND MONOPOLES

The service life of steel monopoles and lattice towers can be severely curtailed after a period of time

without preventive treatment. Deterioration goes through three identifiable stages before the structure

collapses, each with cost implications.

Chapter 8 - COMPETITIONS FOR TOWER DESIGN

ncreasing public awareness of and resistance to lattice towers is leading to imaginative designs for new

poles and towers.

Chapter 9 - MANUFACTURERS OF LATTICE TOWERS AND MONOPOLES

Production capacity of the 34 major producers of lattice towers and monopoles is tabulated with market

shares. The leading companies are profiled.


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PART 2 ELECTRICITY, TELEPHONE & STREET LIGHTING POLES

Chapter 10 - UTILITY POLES INSTALLED BASE BY COUNTRY AND UTILITY

The installed base of poles – electricity, telegraph and street lights – is analysed by country for 2016,

with a split by voltage levels; MV sub-transmission, primary distribution and LV secondary distribution

and reticulation. Street lights have been included for the first time.

Chapter 11 - INSTALLED BASE OF POLES BY COUNTRY AND MATERIAL

The installed base of utility poles is analysed by material - wood, steel, concrete, composite – and

analysed by country.

Chapter 12 - GROWTH OF THE POLE POPULATION

The total installed base of poles is forecast from 2016 to 2020 by country.

Chapter 13 - DEMAND FOR POLES IN UNITS

Demand for utility poles in units is tabulated by region and country and forecast from 2016 to 2020.

Chapter 14 - DEMAND FOR POLES BY VALUE

Demand for utility poles in $ value is tabulated by region and country and forecast from 2016 to 2020.

Chapter 15 - THE VALUE CHAIN – FROM MATERIALS TO CAPEX

The value chain is a continuous process of adding cost to a product. Depending where you position it, the

value changes, the end user’s capex being some five times the cost of original materials. The value chain

is analysed with different mark-ups for each of six stages.

Chapter 16 - NATIONAL MARKETS FOR ELECTRICITY AND TELEPHONE DISTRIBUTION POLES

The statistics for utility poles are not very systematic and are variable in extent from country to country.

Some countries publish detailed analysis of numbers of towers in their electricity and telephone

networks and poles by material but for most countries the data is scattered. Much of the information is

anecdotal, contained in reports on other topics, such as wood harvesting and preservatives, materials

technology, commodity prices, efficiency issues, LEDs, the development of composites, avian dangers

etc. However, with wide searching a surprising amount of data has been accumulated and StatPlan has

assembled and maintains an ever-increasing databank for this topic.

Chapter 17 - STREET LIGHTING DEVELOPMENTS

Street lighting is a hot topic at present, because of the developments of the smart city and the advent of

energy saving LEDs. This has implications for the pole markets in renewal of old poles and substitution

with new materials such as composites.

Chapter 18 - MATERIAL COMPOSITION OF POLES AND SERVICE LIFE

he various materials used for poles – wood, steel, concrete and composite are discussed.


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Chapter 19 - COMPOSITE POLES

Composites are analysed in a 23 page section discussing this technology, applications, advantages and

disadvantages, market status and manufacturers. Factors such as safety, pricing, the production

processes of filament winding and pultrusion are outlined. The launch market in the United States is

reviewed, with the increasing use of composite cross arms on wooden or concrete poles, and the

beginning of a move from niche market status to wider take-up. Composites are gaining acceptance in

the desert climates of the Middle East. After being spearheaded in Scandinavia, composites are being

trialed in other European countries, and the first composite distribution pole was installed in the UK in

2016.

Chapter 20 - TYPES OF POLES

he different types of pole are described, with their functions, characteristics and service lives.

Chapter 21 – POLE SPAN

he span between poles is a function of the weight of lines they bear and the density of population

beneath them. The design of a network involves a trade-off between longer poles which are more

expensive but need fewer accessories, or shorter poles which are cheaper but need more cross-arms and

other equipment.

Chapter 22 - SPACE ALLOCATION ON JOINT USE UTILITY POLES

Utility poles are used by more than one line or service in many cases. Conventions exist for the allocation

of space on the pole; for transmisson lines, sub-transmission lines, distribution lines and telephone lines

Chapter 23 – SERVICE LIFE AND MAINTENANE OF POLES

The life of wooden poles is prolonged by treatment with wood preservatives but some of these are now

banned as environmentally harmful. The treatment is more complex than simply brushing preservative

onto the pole and involves pressurised application. Different treatments and requirements exist for

other materials such as steel, concrete and composite.

Chapter 24 - MANUFACTURERS OF DISTRIBUTION POLES

Producers of poles of all materials are listed and the leaders profiled.

Chapter 25 – CIRCUITS, PHASES AND CONDUCTORS

The basics of circuits and phases are outlined. These have a vital effect on the design and mechanics for

towers and poles as well as overhead lines.

Chapter 26 - RIGHTS OF WAY

ROW – Rights of Way are increasingly scarce and expensive. They are discussed with various alternative

schemes outlined.


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Chapter 27 – DANGER to AND FROM BIRDS

The danger from birds nesting on or colliding with lines and towers can cause not only harm to the birds

but outages to the network. The extent of the problem is analysed, with mitigation and prevention

methods outlined.

METHODOLOGY

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Telecom Network Report Ed4 2017

Table of Contents

EXECUTIVE SUMMARY ........................................................................................................................... 9

Evolution of the technology generations 1G to 5G ........................................................................... 12

Spectrum refarming ........................................................................................................................... 14

Introduction to virtualisation in all industries ................................................................................... 14

Network virtualisation ....................................................................................................................... 15

MVNO Mobile Virtual Network Operator and Sub-Brands ............................................................... 17

Backhaul and Fronthaul ..................................................................................................................... 17

Development of the market .............................................................................................................. 18

Macro cell sites and base stations ..................................................................................................... 19

Tower ownership ............................................................................................................................... 20

The HetNet, Densification and small cells ......................................................................................... 23

1. TELECOMS NETWORK TECHNOLOGY AND DEPLOYMENTS ................................................................... 25

Network technology .......................................................................................................................... 25

HetNet/Heterogeneous Network ...................................................................................................... 25

Virtualisation ...................................................................................................................................... 26

Cells .................................................................................................................................................... 26

Types of base station ......................................................................................................................... 27

Macro cells ......................................................................................................................................... 27

Small cells........................................................................................................................................... 29

Microcells ........................................................................................................................................... 29

Metrocells .......................................................................................................................................... 30

Picocells ............................................................................................................................................. 31

Femtocells .......................................................................................................................................... 31

DAS ..................................................................................................................................................... 32

Small cells or DAS? ............................................................................................................................. 32

Wi-Fi ................................................................................................................................................... 32

2. RISING VOLUME OF DATA TRAFFIC....................................................................................................... 34

3. TECHNOLOGY PENETRATION – 1G to 5G .............................................................................................. 37

Timeline of mobile development ...................................................................................................... 37

Unique mobile subscribers ................................................................................................................ 39

2G ....................................................................................................................................................... 40

3G ....................................................................................................................................................... 41

Smartphones – 3G & 4G .................................................................................................................... 41

4G LTE ................................................................................................................................................ 42

5G ....................................................................................................................................................... 44

5G trials .............................................................................................................................................. 44

5G network deployments .................................................................................................................. 45

Coverage ............................................................................................................................................ 46

Spectrum refarming ........................................................................................................................... 49

4. MIGRATION TO 4G IN CHINA, INDIA AND PAKISTAN ........................................................................... 51

China .................................................................................................................................................. 51

India ................................................................................................................................................... 54

Pakistan .............................................................................................................................................. 55

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5.TRADITIONAL NETWORK ARCHITECTURE, BACKHAUL AND FRONTHAUL .............................................. 56

Backhaul ............................................................................................................................................. 56

Macro and micro backhaul ................................................................................................................ 59

Front haul ........................................................................................................................................... 60

6.VIRTUALISATION ..................................................................................................................................... 61

Introduction to virtualisation in all industries ................................................................................... 61

Types of virtualisation ........................................................................................................................ 62

The development of virtualisation ..................................................................................................... 63

The benefits of virtualisation ............................................................................................................. 63

The virtualisation market ................................................................................................................... 66

Server virtualisation ........................................................................................................................... 66

Desktop virtualisation ........................................................................................................................ 66

Application virtualisation ................................................................................................................... 67

7.NETWORK VIRTUALISATION ................................................................................................................... 68

NV Network Function Virtualisation .................................................................................................. 68

SDN Software-defined Networking .................................................................................................... 69

The OSI model of data communications ............................................................................................ 69

V-RAN ................................................................................................................................................. 70

Service providers and enterprise networks ....................................................................................... 70

MNOs and the virtual network .......................................................................................................... 71

The NV market ................................................................................................................................... 72

MVNO Mobile Virtual Network Operator .......................................................................................... 73

MVNO Business models ..................................................................................................................... 76

MVNE - Mobile Virtual Network Enabler ........................................................................................... 76

MVNA Mobile Virtual Network Aggregator ....................................................................................... 76

Sub-brands ......................................................................................................................................... 77

MVNO and sub-brand segments ....................................................................................................... 77

8.CENTRALISED AND DISTRIBUTED BASEBAND ......................................................................................... 78

9.MOBILE MARKET REVIEW ....................................................................................................................... 80

The development of mobile telephony in the United States ............................................................ 80

The emergence of new telecommunications players ........................................................................ 81

Cable .................................................................................................................................................. 81

The Internet ....................................................................................................................................... 82

Cellular and Wireless ......................................................................................................................... 82

Europe ................................................................................................................................................ 86

The development of mobile telephony in Europe ............................................................................. 86

France ................................................................................................................................................ 87

Germany ............................................................................................................................................ 88

Italy .................................................................................................................................................... 88

Poland ................................................................................................................................................ 89

Spain .................................................................................................................................................. 89

Sweden .............................................................................................................................................. 91

United Kingdom ................................................................................................................................. 91

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CIS ....................................................................................................................................................... 92

Russia .................................................................................................................................................. 92

Ukraine ............................................................................................................................................... 93

The development of mobile telephony in the CIS .............................................................................. 95

MENA .................................................................................................................................................. 95

Saudi Arabia ........................................................................................................................................ 96

North Africa ........................................................................................................................................ 97

Egypt ................................................................................................................................................... 97

Algeria................................................................................................................................................. 98

Morocco ............................................................................................................................................. 98

Tunisia ................................................................................................................................................ 99

Sub-Saharan Africa ............................................................................................................................. 99

EAC - East African Community............................................................................................................ 100

Ethiopia............................................................................................................................................... 101

Kenya .................................................................................................................................................. 102

Uganda ............................................................................................................................................... 103

ECCAS, Economic Community of Central African States .................................................................... 104

DR Congo ............................................................................................................................................ 105

ECOWAS Economic Community of West African States .................................................................... 106

Cote d’Ivoire ....................................................................................................................................... 107

Ghana ................................................................................................................................................. 108

Nigeria ................................................................................................................................................ 108

Senegal ............................................................................................................................................... 109

SADC Southern African Development Community ............................................................................ 110

South Africa ........................................................................................................................................ 111

Mozambique ...................................................................................................................................... 112

Tanzania ............................................................................................................................................. 113

Asia Pacific .......................................................................................................................................... 113

China ................................................................................................................................................... 113

India .................................................................................................................................................... 114

Japan ................................................................................................................................................... 114

The development of mobile telephony in Japan ................................................................................ 115

Indonesia ............................................................................................................................................ 116

Malaysia ............................................................................................................................................. 118

Myanmar ............................................................................................................................................ 119

Thailand .............................................................................................................................................. 120

Vietnam .............................................................................................................................................. 121

Central and South America ................................................................................................................ 121

Brazil ................................................................................................................................................... 122

Mexico ................................................................................................................................................ 123

Argentina ............................................................................................................................................ 124

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Table of Contents

10. NETWORK DISTRIBUTION OF GROUND BASED TOWERS, ROOFTOPS, DAS AND STREET POLES ........ 126

11. INSTALLED BASE OF MACRO CELL SITES .............................................................................................. 128

12. EXPENDITURE ON MACRO CELL SITES ................................................................................................. 143

Prices of tower base stations ............................................................................................................. 144

NORTH AMERICA ............................................................................................................................... 144

EUROPE .............................................................................................................................................. 145

France ................................................................................................................................................ 146

Germany ............................................................................................................................................ 147

Italy .................................................................................................................................................... 147

Poland ................................................................................................................................................ 148

Spain .................................................................................................................................................. 148

Sweden .............................................................................................................................................. 148

United Kingdom ................................................................................................................................. 149

Revenue of tower construction ......................................................................................................... 149

CIS ...................................................................................................................................................... 150

Russia ................................................................................................................................................. 150

Ukraine............................................................................................................................................... 150

MENA ................................................................................................................................................. 152

Saudi Arabia ....................................................................................................................................... 152

North Africa ....................................................................................................................................... 152

Egypt .................................................................................................................................................. 153

Algeria ................................................................................................................................................ 153

Sub-Saharan Africa ............................................................................................................................ 154

Tower sharing .................................................................................................................................... 154

EAC - East African Community ........................................................................................................... 156

Kenya ................................................................................................................................................. 156

Uganda ............................................................................................................................................... 156

ECCAS, Economic Community of Central African States ................................................................... 157

DR Congo ........................................................................................................................................... 157

ECOWAS Economic Community of West African States .................................................................... 157

Cote d’Ivoire ...................................................................................................................................... 157

Ghana ................................................................................................................................................. 157

Nigeria ................................................................................................................................................ 158

Senegal ............................................................................................................................................... 159

SADC Southern African Development Community ............................................................................ 159

South Africa ....................................................................................................................................... 159

Mozambique ...................................................................................................................................... 160

Tanzania ............................................................................................................................................. 160

Asia Pacific ......................................................................................................................................... 162

China .................................................................................................................................................. 162

India ................................................................................................................................................... 162

Japan .................................................................................................................................................. 163

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Indonesia ........................................................................................................................................... 164

Malaysia ............................................................................................................................................. 164

Myanmar ........................................................................................................................................... 164

Thailand ............................................................................................................................................. 165

Vietnam ............................................................................................................................................. 165

Central and South America ................................................................................................................ 167

Brazil .................................................................................................................................................. 167

Mexico ............................................................................................................................................... 167

Argentina ........................................................................................................................................... 168

13. THE HETNET, DENSIFICATION AND SMALL CELLS - DEVELOPMENTS AND INSTALLED BASE .............. 170

Densification ...................................................................................................................................... 170

Why we need to densify .................................................................................................................... 171

Types of base station ......................................................................................................................... 171

Introduction ....................................................................................................................................... 171

The early developments of small cells .............................................................................................. 173

Why were these early micro/picocellular 2G base stations not successful? .................................... 174

The penetration of small cell base stations ....................................................................................... 175

Market segments ............................................................................................................................... 177

Small cell shipments to 2015 ............................................................................................................. 177

Cost of deployment of small cells ...................................................................................................... 179

14. BASE TRANSCEIVER STATIONS (BTS) FOR MACRO CELLS AND SMALL CELLS ...................................... 181

15. EXPENDITURES ON SMALL CELL SITES ................................................................................................ 183

16. MANUFACTURERS OF LATTICE TOWERS AND MONOPOLES .............................................................. 185

Chinese manufacturers ..................................................................................................................... 186

Other Asian manufacturers ............................................................................................................... 187

North American manufacturers ........................................................................................................ 187

Brazil .................................................................................................................................................. 188

Turkey ................................................................................................................................................ 188

17. BACKHAUL VENDORS........................................................................................................................... 189

18. INFRASTRUCTURE SHARING ................................................................................................................ 191

Tower infrastructure companies ....................................................................................................... 192

The economics of telcos and towercos ............................................................................................. 194

Reduced time-to-market ................................................................................................................... 195

The towerco business model ............................................................................................................. 195

19. ENERGY COSTS AND SOURCES ............................................................................................................ 197

20. THE TOWERCO MARKET ...................................................................................................................... 199

Tower infrastructure companies ....................................................................................................... 199

United States ..................................................................................................................................... 201

Europe ............................................................................................................................................... 203

CIS ...................................................................................................................................................... 204

Asia Pacific ......................................................................................................................................... 204

India ................................................................................................................................................... 205

Indonesia ........................................................................................................................................... 206

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Table of Contents

China................................................................................................................................................... 206

Japan .................................................................................................................................................. 207

MENA ................................................................................................................................................. 207

Sub-Saharan Africa ............................................................................................................................. 208

South America .................................................................................................................................... 210

20. CRITERIA FOR MARKET EVALUATION .................................................................................................. 211

Criteria for MNO market evaluation – numbers of subscribers, ARPU, ARPA .................................. 211

21. NETWORK GLOSSARY, DEFINITIONS AND EXPLANATIONS .................................................................. 212

NV Network Virtualisation .............................................................................................................. 248

METHODOLOGY ........................................................................................................................................ 253

Figures

Figure 1: HetNets ................................................................................................................... 25

Figure 2: Types of macro cell ground based towers (GBT) .................................................. 27

Figure 3: Street poles ............................................................................................................. 28

Figure 4: Macro cell rooftop towers (RTT) ............................................................................. 28

Figure 5: Microcell base station ............................................................................................ 29

Figure 6: Metrocell base station ........................................................................................... 30

Figure 7: Picocell base station .............................................................................................. 31

Figure 8: Some examples of femtocells ............................................................................... 31

Figure 9: Mobile network coverage and evolving technologies ........................................... 34

Figure 10: 4G LTE penetration, top 20 countries, Q4 2015 ............................................... 35

Figure 11: US total data consumption by device type in petabytes/month, 2014 -20 ..... 36

Figure 12: Data traffic from wireless and mobile devices 2010 to 2020 .......................... 36

Figure 13: 2G o 4G download rates ...................................................................................... 38

Figure 14: Global mobile connections by technology, 2010 to 2020 ................................ 39

Figure 15: Coverage of 4G in 2016, ..................................................................................... 46

Figure 16: The difference in take-up of 3g and 4G in China ............................................... 53

Figure 17: The Backhaul Network in the MNO Architecture ................................................ 57

Figure 18: Traditional and virtual architecture ..................................................................... 62

Figure 19: Perceived attributes of NV solutions ................................................................... 71

Figure 20: NV Vendors considered among NV end users .................................................... 72

Figure 21: Regional distribution of MVNOs, December 2015 ............................................. 75

Figure 22: The 10 countries with the largest number of MVNOs: ....................................... 75

Figure 23: Distributed and mixed centralised and distributed baseband deployments ... 79

Figure 24: The countries of the East Africa Community ................................................... 100

Figure 25: The countries of the Economic Community of Central African States ........... 104

Figure 26: The countries of the Economic Community of West African States ............... 106

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Table of Contents

Figure 27: The countries of the Southern African Development Community ................... 110

Figure 28: Global installed base of telecoms towers, 2016-2021 ................................... 128

Figure 29: Global installed telecoms towers by region, 2016 .......................................... 129

Figure 30: Installed telecoms towers (active), USA and Canada, 2016-2021 ................. 130

Figure 31: Installed telecoms towers, Europe by country, 2016-2021 ............................ 131

Figure 32: Installed telecoms towers, CIS by country, 2016-2021 .................................. 133

Figure 33: Installed telecoms towers, Middle East by country, 2016-2021 .................... 134

Figure 34: Installed telecoms towers, North Africa by country, 2016-2021 .................... 135

Figure 35: Installed telecoms towers, Sub-Saharan Africa by country, 2016-2021 ........ 136

Figure 36: Global installed telecoms towers, China and India, 2016-2021 .................... 138

Figure 37: Global installed telecoms towers, selected countries in Asia Pacific ............ 138

Figure 38: Global installed telecoms towers, selected countries in LAC, 2016-2021 .... 141

Figure 39: The structure of tower ownership in Europe, 2016 and 2020 ....................... 146

Figure 40: Illegal rooftop towers in India ............................................................................ 163

Figure 41: Evolution of network design increased densification ..................................... 173

Figure 42: The Gartner Hype Curve .................................................................................... 176

Figure 43: Cumulative shipments of small cells, 2011 to 2016 ...................................... 177

Figure 44: Cumulative shipments of small cells by cell type, 2013 to 2016 ................... 178

Figure 45: Annual shipments of small cells by type, 2014 to 2017 ................................. 178

Figure 46: Total cost of installation of small cells by cost component ............................. 180

Figure 47: Mobile traffic by cell site type by 2020 ............................................................. 181

Figure 48: Demand for cellular base stations, macro and micro, 2016-21. .................... 182

Figure 49: Structure of a mobile network ........................................................................... 193

Figure 50: Breakdown of tower expenses, capex and opex, as a % of total cost ............ 195

Figure 51: Number of countries sharing or co-location of passive infrastructure

for telecoms operators ...................................................................................... 196

Figure 52: Example of infrastructure sharing of 2 tenants and 4 tenants ....................... 196

Figure 53: Number of bad-grid and off-grid towers, in 2014 and projected for 2020. ... 197

Figure 54: Number of towers owned by independent towercos and by MNOs ................ 200

Figure 55: Analog vs digital signals .................................................................................... 212

Figure 56: Containers vs. virtual machines ........................................................................ 216

Figure 58: 2G o 4G download rates .................................................................................... 222

Figure 59: Current Telecommunications Hierarchy Diagram. ........................................... 235

Figure 60: High level NFV framework ................................................................................. 250

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Table of Contents

Tables

Table 1: Prefixes for units of data speed .............................................................................. 33

Table 2: Global mobile connections by region, 2010 to 2020 ........................................... 39

Table 3: Global mobile connections by technology, 2010 to 2020 .................................... 40

Table 4: Penetration of 2G among mobile connections by region, 2010 to 2020 ............ 40

Table 5: Penetration of 3G among mobile connections by region, 2010 to 2020 ............ 41

Table 6: Penetration of 3G & 4G among mobile connections by region, 2010 to 2020 ... 42

Table 7: 4G leaders at end 2016 .......................................................................................... 42

Table 8: Penetration of 4G among mobile connections by region, 2010 to 2020. ........... 43

Table 9: Coverage of 4G in 2016 .......................................................................................... 47

Table 10: Number of 4G base stations in China, 2017....................................................... 54

Table 11: Reasons to Use Virtualisation ............................................................................... 64

Table 12: OSI Open Source Interconnection, 7 Layer Model .............................................. 70

Table 13: The first MVNOs ..................................................................................................... 74

Table 14: Segments of the MVNO and Sub-brand market .................................................. 77

Table 15: Major Mobile Operators in the United States ...................................................... 83

Table 16: MVNOs in the United States ................................................................................. 83

Table 17: The distribution of macro cell sites by type ....................................................... 126

Table 18: Distribution of GBTs and urban cell sites; RTTs, DASs and poles in 2016. ..... 127

Table 19: Global installed telecoms towers in thousands, by region, 2016-2021 .......... 129

Table 20: Installed telecoms towers, North America by country, 2016-2021 ................. 130

Table 21: Installed telecoms towers, Europe by country, 2016-2021 ............................. 132

Table 22: Global installed telecoms towers, CIS by country, 2016-2021 ........................ 133

Table 23: Installed telecoms towers, Middle East by country, 2016-2021 ..................... 134

Table 24: Global installed telecoms towers, North Africa by country, 2016-2021 .......... 135

Table 25: Installed telecoms towers, Sub-Saharan Africa by country, 2016-2021 ......... 137

Table 26: Global installed telecoms towers, Asia by country, 2016-2021....................... 139

Table 27: Global installed telecoms towers, Pacific by country, 2016-2021 .................. 140

Table 28: Installed telecoms towers, South America by country, 2016-2021 ................. 141

Table 29: Installed telecoms towers, Central America by country, 2016-2021 .............. 142

Table 30: Expenditure on telecoms towers by region, 2015 to 2020 .............................. 143

Table 31: Costs of constructing a telecoms towers in selected countries and regions... 144

Table 32: Capital expenditure on new telecoms towers and replacements and upgrades,

USA and Canada nominal $ million, 2016 - 2021 ............................................................. 145

Table 33: Capital expenditure on new telecoms towers and

replacements and upgrades, Europe, nominal $ million, 2016 - 2021 ........................... 149

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Table of Contents

Table 34: Capital expenditure on new telecoms towers and replacements and upgrades, CIS,

nominal $ million, 2016 - 2021 ......................................................................................... 151

Table 35: Capital expenditure on new telecoms towers and replacements and upgrades, Mid-

dle East nominal $ million, 2016 - 2021........................................................................... 152

Table 36: Capital expenditure on new telecoms towers and replacements and upgrades, North

Africa, nominal $ million, 2016 - 2021.............................................................................. 154

Table 37: Capital expenditure on new telecoms towers and replacements and upgrades, Sub-

Saharan Africa, nominal $ million, 2016 - 2021 .............................................................. 161

Table 38: Capital expenditure on new telecoms towers and replacements and upgrades, China

and India nominal $ million, 2016 - 2021 ........................................................................ 162

Table 39: Capital expenditure on new telecoms towers, replacements and upgrades, Asia

nominal $ million, 2016 – 2021 (including China and India) .......................................... 165

Table 40: Capital expenditure on new telecoms towers and replacements and upgrades, Pacif-

ic, nominal $ million, 2016 - 2021 .................................................................................... 166

Table 41: Capital expenditure on new telecoms towers and replacements and upgrades, South

America, nominal $ million, 2016 - 2021 ......................................................................... 168

Table 42: Capital expenditure on new telecoms towers and replacements and upgrades, Cen-

tral America, nominal $ million, 2016 – 2021 .................................................................. 168

Table 43: Small cells expenditure by region, 2015 to 2020 ............................................ 183

Table 44: Small cells expenditure in Europe by country, 2015 to 2020 ......................... 183

Table 45: Small cells expenditure in North America by country, 2015 to 2020 ............. 184

Table 46: Small cells expenditure in Middle East by country, 2015 to 2020 ................. 184

Table 47: Small cells expenditure in Asia Pacific by country, 2015 to 20 ...................... 184

Table 48: Manufacturers of steel towers and poles, by share of production capacity ... 185

Table 49: Backhaul vendors, macro cell and small cell ................................................... 189

Table 50: Share of towerco ownership of towers by region, 2016 .................................. 191

Table 51: Incidence of sharing in regions and selected countries................................... 199

Table 52: Number of independent towers in regions and selected countries, installed base,

2016 .................................................................................................................................... 200

Table 53: Top telecom tower companies in the United States with number of towers installed,

2012, 2014 and 2016 ....................................................................................................... 201

Table 54: Tower portfolios of operator-promoted tower infrastructure companies/telecom op-

erators and of third party tower companies in India, 2015 .............................................. 206

Table 55: Numbers of towers owned by Japanese telecoms operators .......................... 207

Table 56: OSI Open Source Interconnection, 7 Layer Model............................................ 230

Table 57: Small cell characteristics 239

Telecoms Network Report Sample Pages

14

Unique mobile subscribers

The global penetration of unique mobile subscribers has risen from XX% in 2010 to XX% in 2016

and is forecast to reach XX% by 2020. Many subscribers have more than one subscription,

personal or work, mobile and tablet, which is why in advanced countries the numbers of SIMs, or

all subscriptions exceed 100% of the population sometimes by a large margin. The rate of growth

has been highest and will continue to be highest in Sub-Saharan Africa, where penetration has

risen from XX% in 2010 to XX% in 2016 and will reach XX% by 2020.

Table 1: Global mobile connections by region, 2010 to 2020

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

North America

Europe

CIS

Asia Pacific

LAC

MENA

Sub-Saharan Africa

World

Source: GSMA and StatPlan estimates

Table 2: Global mobile connections by technology, 2010 to 2020

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

4G

3G

2G

Table 3: Penetration of 3G & 4G among mobile connections by region, 2010 to 2020

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

North America

Europe

CIS

Asia Pacific

LAC

MENA

Sub-Saharan Africa

World


15

Table 4: Penetration of 4G among mobile connections by region, 2010 to 2020.

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

North America

Europe

CIS

Asia Pacific

LAC

MENA

Sub-Saharan Africa

World

6. VIRTUALISATION

Introduction to virtualisation in all industries

Virtualisation is a generational innovation in the Information Technology field. It is the ability to

simulate a hardware platform in software. Virtualisation is the creation of a virtual, rather than

actual, version of something, such as an operating system, a server, a storage device or network

resources. All of the functionality is separated from the hardware and simulated as a ‘virtual

instance,’ with the ability to operate just as the traditional, hardware solution would. Of course,

somewhere there is host hardware supporting the virtual instances of these resources, but this

hardware can be general, off-the-shelf platforms. In addition, a single hardware platform can be

used to support multiple virtual devices or machines, which are easy to spin up or down as

needed. As a result, …………………………...

7. NETWORK VIRTUALISATION

Modern telecoms networks contain an ever-increasing variety of proprietary hardware. The

launch of new services often demands network reconfiguration and on-site installation of new

equipment which in turn requires additional floor space, power, and trained maintenance staff.

The innovation cycles accelerate and require greater flexibility and dynamism than hardware-

based appliances allow. Hard-wired network with single functions boxes are tedious to maintain,

slow to evolve, and prevent service providers from offering dynamic services. Key enabling

technologies for this vision include SDN (Software Defined Networking) and NFV (Network

Functions Virtualisation). SDN and NFV are complementary but increasingly co-dependent

…………………………….


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Figure 1: NV Vendors considered among NV end users

Figure 2: Regional distribution of MVNOs, December 2015

Table 5: Segments of the MVNO and Sub-brand market

MVNO Sub-brand MVNO 2014 2014 2015

Business customers

Discount, low cost#

M2M

Media entertainment

Migrant/International voice services

Consumer retail

Roaming, international travellers

Telecom


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11. INSTALLED BASE OF MACRO CELL SITES

This chapter is concerned with macro cell GBTs, RTTs and street poles base stations, and does

not include small cells base stations. It is important to emphasise that a tower is a structure

supporting a base station, not itself a base station and it is a component of the cost of a base

station. We use the term ‘tower’ because it is in common use, but we are actually referring to

base transceiver stations - BTS. Please refer to the Glossary at the end of this report.

There are XX million telecoms towers installed in the world in 2016, including GBTs, RTTs and

street poles, growing at a cagr of XX% to 2021………………………………………………….

Figure 3: Global installed telecoms towers by region, 2016

Table 6: Global installed telecoms towers in thousands, by region, 2016-2021

‘000 2016 2017 2018 2019 2020 2021 cagr % of towers 2016

2016

Europe

CIS

Middle East

North Africa

Sub-Saharan Africa

China

India

Rest of Asia Pacific

North America

South America

Central America

World


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Table 7: Installed telecoms towers, Europe by country, 2016-2021

2016 2017 2018 2019 2020 2021

Albania

Austria

Belgium

Bosnia & H'govina

Bulgaria

Croatia

Cyprus

Czech Republic

Denmark

Estonia

Finland

France

Germany

Greece

Hungary

Iceland

Ireland

Italy

Latvia

Lithuania

Luxembourg

Macedonia

Malta

Netherlands

Norway

Poland

Portugal

Romania

Serbia Montenegro

Slovakia

Slovenia

Spain

Sweden

Switzerland

Turkey

United Kingdom

Europe

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